Property prices rise 1.49% in Q2 of 2021

Property prices rise 1.49% in Q2 of 2021

An illustration of a worker carrying construction material at KPR's housing construction project in Sigi, Central Sulawesi. ANTARA FOTO/Basri Marzuki/wsj. (ANTARA FOTO/BASRI MARZUKI)

The residential property price index (IHPR) in the second quarter of 2021 recorded a growth of 1.49 percent (year on year), higher than 1.35 percent (yoy) in the corresponding quarter
Jakarta (ANTARA) - Residential property price roses in the second quarter of 2021, according to Bank Indonesia’s residential property price survey (SHPR). “The residential property price index (IHPR) in the second quarter of 2021 recorded a growth of 1.49 percent (year on year), higher than 1.35 percent (yoy) in the corresponding quarter,” BI’s department communication head Erwin Haryono stated in a press release here, Friday.

Hence, the primary residential property price is projected to slightly increase by 1.12 percent (yoy) in the third quarter of 2021, Haryono noted.


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On the sales side, the survey indicated that the residential property sales in the primary market in the second quarter of 2021 contracted by 10.01 percent (yoy), which is lower than 13.95 percent (yoy) in the corresponding quarter.

“The deep jump in property sales was contained by middle-type-house sales that remained positive,” he outlined.

The survey showed that the developers still relied on non-banking finance for the construction of residential properties, according to financial resources.

In the second quarter of 2021, 66.45 percent of the total housing project construction capital was from the internal fund, it added.

Meanwhile, on the consumer side, banking financing under the home ownership credit (KPR) facility remained the consumer’s main choice in purchasing residential property with a share of 75.08 percent of the total financing.


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